California Resources Corporation Announces First Quarter 2021 Results and $150 Million Share Repurchase Program

Rhea-AI Summary

California Resources Corporation (CRC) reported strong Q1 2021 results with a net loss of $94 million, but adjusted net income of $102 million. The company generated free cash flow of $120 million, reaffirming its 2021 guidance of $250-$350 million. CRC's Board authorized a $150 million Share Repurchase Program, enhancing shareholder value. The company successfully simplified its capital structure with a $600 million debt offering and ended the quarter with $130 million cash. Operationally, CRC produced an average of 99,000 BOE per day while maintaining significant cost reductions.

Positive

• Generated adjusted net income of $102 million.
• Authorized a $150 million Share Repurchase Program to boost shareholder value.
• Produced an average of 99,000 BOE per day, indicating solid operational performance.
• Achieved free cash flow of $120 million, supporting future capital returns.

Negative

• Reported a net loss of $94 million attributed to common stock.

California Resources Corporation (NYSE: CRC), an independent oil and natural gas exploration and production company, today reported first quarter 2021 operational and financial results.

“CRC delivered on its strategy with strong first quarter results while maintaining solid environmental and safety records,” said Mac McFarland, President and Chief Executive Officer. "Given the positive first quarter results, supported by the previously announced capital structure simplification through a senior debt offering and the recent amendment to our Revolving Credit Facility, CRC’s Board of Directors authorized a $150 million Share Repurchase Program. This promising step underpins our robust financial fundamentals which are further strengthened by CRC's 2021 projected free cash flow¹. As CRC is tracking to the high end of 2021 free cash flow¹ guidance, we will look for additional ways to return capital to our shareholders as the year progresses.”

First Quarter 2021 Highlights

Financial

• Reported a net loss attributable to common stock of $94 million, or $1.13 per diluted share. Adjusted net income¹ was $102 million, or $1.22 per diluted share
• Generated adjusted EBITDAX¹ of $189 million and free cash flow¹ of $120 million
• Reaffirmed 2021 free cash flow¹ guidance and optimized CRC investment dollars by shifting $15 million from drilling and completions to downhole maintenance projects which provide efficiencies and faster payouts
• Closed the quarter with $130 million of cash on hand, an undrawn credit facility and $545 million of liquidity²
• Simplified CRC's capital structure with a senior unsecured $600 million debt offering
• Subsequent to quarter end, signed an amendment to its Revolving Credit Facility which provides CRC with additional strategic flexibility with regard to returning capital to shareholders and to future hedging levels, and completed the borrowing base review which set the borrowing base at $1.2 billion
• Quarterly operating costs were $164 million and general and administrative (G&A) expenses were $48 million, a reduction of 15% and 20%, respectively, as compared to 1Q20
• Generated net cash provided by operating activities of $147 million with quarterly capital expenditures of $27 million

Operational

• Produced an average of 99,000 net barrels of oil equivalent (BOE) per day, including 60,000 barrels per day of oil
• Maintained industry leading HSE standards
• Operated one drilling rig in the San Joaquin Basin; operated 30 maintenance rigs; drilled 17 wells (15 online in 1Q21, final two online in 2Q21); and completed 40 capital workovers

2021 Guidance

Given the strength of the first quarter results, CRC reaffirmed previously issued 2021 free cash flow¹ guidance of $250 to $350 million and it sees 2021 free cash flow¹ trending towards the high end of the stated guidance range. Recognizing capital efficiency improvements and faster payouts on downhole maintenance projects, CRC revised its operating and capital guidance by shifting $15 million of drilling and completions capital to these opportunities. CRC made $27 million of capital investments in the first quarter of 2021. The current capital program anticipates CRC to gradually increase quarterly investment throughout the year if the commodity environment continues to strengthen. If commodity prices decline significantly from current levels, CRC may need to adjust its capital program in response to market conditions. The Company's capital program will be dynamic in response to oil market volatility while focusing on maintaining its oil production, strong liquidity and maximizing its free cash flow.

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2021E TOTAL YEAR GUIDANCE				Total Year 2021E

FAQ

What were California Resources Corporation's first quarter results for 2021?

CRC reported a net loss of $94 million but an adjusted net income of $102 million for Q1 2021.

How much is CRC's Share Repurchase Program?

CRC's Board authorized a $150 million Share Repurchase Program to return capital to shareholders.

What is CRC's free cash flow guidance for 2021?

CRC reaffirmed its 2021 free cash flow guidance of $250 to $350 million, trending towards the high end.

What operational highlights did CRC achieve in Q1 2021?

CRC produced an average of 99,000 BOE per day and maintained significant reductions in operating costs.

What improvements did CRC make to their capital structure?

CRC simplified its capital structure with a $600 million senior unsecured debt offering.